Following a sharp dip this morning, the Footsie spent much of the day firmly in the red before making a minimal move higher late on, ultimately ending 45.67 points lower at 6,672.37.

The index was weighed by events over in the Eurozone, with concern focused on Portugal, France, and, following recent data, Germany.

Here in the UK, the main news was that the Bank of England's (BoE) Monetary Policy Committee (MPC) has maintained the Bank Rate at 0.5% and the size of its asset purchase programme at £375bn.

The news did not come as a surprise to the market as there had not been any moves in economic data in the past month significant enough to support a change in course, with economists suggesting next month's meeting is already provoking more interest.

Giving his view of the day's events, IG Market Analyst Chris Beauchamp said: "A 'sea of red' has taken hold of equity indices, with the spectre of the Eurozone crisis looming over markets once again.

"With Portugal looking to be in trouble once again, prudent analysis has been thrown out of the window in preference to a knee-jerk reaction. Portuguese bond yields aren't soaring (yet), and the contagion hasn't spread to Spain or Italy (yet), but the combination of the news from Lisbon and more data that confirms the weakness of the Eurozone has provided the excuse to finally kick start the summer volatility trade into life."

French industrial output for May dropped 1.7%, compared to a forecast for a 0.2% increase. The report follows data earlier in the week that showed German exports declined more than expected in May, as well as an unexpected drop in German industrial output.

UK trade deficit widens

Focusing back the UK, data showed that the trade deficit had widened to £9.2bn in May due to lower shipments from manufacturers into the European Union and rising overall imports, both likely to be caused as a stronger sterling makes British goods less competitive around the globe.

It is now unlikely that trade will make a positive contribution to gross domestic product (GDP) growth in the second quarter, economists warned.

London house prices are expected to fall over the next three months, according to a poll by the Royal Institution of Chartered Surveyors (RICS).

However, prices in the capital are still expected to rise over the next year. RICS said buyers were making fewer inquiries about homes in London as they show an "increased air of caution".

"Buyer enquiries in the capital are now slipping back, which suggests that the very sharp upward move in prices will flatten over the coming months," said RICS Chief Economist, Simon Rubinsohn.

Burberry leads upside after Q1 growth

High-end British fashion group Burberry was on the rise after saying that underlying growth in retail sales pick up in the first quarter, though currency headwinds increased. Growth accelerated to 17% at constant FX, up from 13% in the second half of last year, helping shares higher today.

Precious metal miners Randgold and Fresnillo were also on the rise as gold and silver prices increased.

Barratt Developments rose after the company boasting that it will hit the top end of analyst expectations with its annual results. Profit before tax is predicted to have more than doubled to £390m in the 12 months to end-June.

Meanwhile, London Stock Exchange was one of the worst performers after Qatar Investment Authority cut its 15% stake in the exchange operator by a third ahead of the UK-listed firm's planned $1.6bn rights issue to fund the acquisition of Frank Russell.

Primark owner and food ingredients group Associated British Foods also underwhelmed with a bullish update with shares falling even though the firm raised its profit guidance for the full year. It now expects adjusted earnings to grow this year as a strong performance at Primark outweighs weakness elsewhere.

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